Budget – capital allowances on cars

It is proposed that, from April 2009, expenditure on cars emitting CO2 of 160g/km, or less, will attract a writing down allowance of 20%, and expenditure on cars emitting in excess of 160g/km will attract a WDA of 10%.

Additionally, the rules at section 578A ICTA which disallow expenditure on car hire may be reformed; with the disallowance possibly only applying to the final user in a chain of leases, thereby reversing the decision in Britax.